Time and materials (T&M) is a contract model where the client pays for the actual time worked and costs incurred, at agreed rates. It replaces a fixed price for a fixed scope with flexible billing that follows the work as it changes.
Fixed price and time and materials split risk differently: one agreed price for a defined scope, or billing for the hours and costs actually spent. Under fixed price the provider absorbs overruns; under time and materials the client does.
A fixed-price contract sets one agreed price for a defined scope of work, so the provider carries the risk if the work takes longer than planned. It works best when requirements are clear, stable and testable before work begins.
A rate card is a provider's list of agreed prices by role, seniority level or service, used to quote and bill work under a contract. In technology staffing it usually sets hourly, daily or monthly rates for each engineer profile.
A retainer model is an arrangement where a client pays a recurring fee to reserve a provider's capacity or expertise for ongoing work. It suits support, advisory and improvement work that has no single end point or fixed scope.
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